The dominance of biologics in the oncology market is a result of their efficacy in treating rare solid tumours and the escalating demand for innovative cancer treatments.
But challenges such as high costs and insurance coverage disparities, particularly in the US, may impact the market's future trajectory.
In a recent report, analysts at GlobalData have highlighted a significant shift in the oncology drug market towards biologics.
The report predicts that the total market for these biologically engineered drugs will continue its rapid growth trajectory, reaching a staggering $786 billion by 2029.
Effective on solid tumours
This remarkable expansion can be attributed to the effectiveness of biologics in treating rare solid tumours.
Unlike chemically synthesised drugs, such as small molecules, biologics are crafted through bioengineering processes using proteins or living cells as their foundation.
Although small molecules have historically dominated the therapy landscape, the ascent of biologics is reshaping the industry. The introduction of Rituximab, the first approved biologic drug in 1998, marked the beginning of this transformation. Since then, numerous biologics have emerged, not only for cancer but also for various other diseases.
The market value of biologics surged from $124 billion in 2009 to an impressive $418 billion in 2022, while small molecules generated $354 billion last year, according to the GlobalData report.
This trend is expected to continue, with biologics projected to reach $786 billion and small molecules $548 billion in 2029. Monoclonal antibodies alone are anticipated to contribute over 40% of the total biologics revenue in 2029.
Biologics already have a substantial presence in the solid tumour indication, surpassing small molecules. Currently, biologics constitute 20% of all drugs, 51% of oncology drugs, and a remarkable 64% of oncology drugs targeted at solid tumours.
One standout biologic in the oncology market is Kite Pharma's Yescarta, a CAR T cell therapy. Approved in 2017 for non-Hodgkin lymphoma, Yescarta is expected to achieve sales of approximately $2.5 billion in 2029.
The market potential for cell therapies like Yescarta could exceed current sales figures, especially as they become more accessible to eligible patients.
Challenging rare cancers
The success of biologics in the global market is due to their effectiveness against challenging rare cancers that small molecules struggle to treat. Biologics offer diverse mechanisms to combat solid tumours, a capability lacking in small molecules.
Another driving force behind the growth of the biologic oncology market is the rising incidence of cancer. According to the International Agency for Research on Cancer, cancer cases increased from 18.1 million in 2018 to 19.3 million in 2020, with solid tumours, including breast cancer, remaining the most prevalent cancer type worldwide.
The evolving landscape of the biologics market presents both opportunities and challenges for the pharmaceutical industry, particularly in the important oncology space.